In its first full quarter as a publicly listed company, Transcorp Power Plc delivered a performance that signals growing investor confidence and operational resilience in Nigeria’s power sector. The company, now a major force in the country’s electricity generation landscape, reported a profit after tax of ₦32.6 billion for Q1 2025, up 62% from ₦20.1 billion in the same period last year.
Revenues surged to ₦105.4 billion, a 55% increase year-on-year, driven by stronger capacity and energy delivery volumes, as well as a significant uptick in international sales. The company’s revenue from international customers alone climbed to ₦28.3 billion, more than double the figure from Q1 2024—a signal of both regional integration in the West African Power Pool and Nigeria’s growing reliability as a power exporter.
A Landmark Transition
The results are the first since Transcorp Power’s high-profile listing on the Nigerian Exchange in January 2024, following its transformation from a private entity into a publicly traded one. The company, born from the merger of Transcorp Ughelli Power Ltd and Ughelli Power Plc—has since undergone a capital restructuring and now boasts a market valuation of over ₦2.7 trillion, based on a share price of ₦364.90 and a free float value of ₦210 billion.
The listing and capital expansion appear to be translating into operational gains. Gross profit for Q1 stood at ₦55.0 billion, while operating profit hit ₦44.5 billion, up from ₦29.4 billion a year earlier.
Capital-Intensive Climb
Yet, the growth is not without cost. The company’s operating cash flow declined slightly compared to full-year trends, as trade receivables ballooned to ₦328.8 billion, driven largely by unsettled payments from the Nigerian Bulk Electricity Trading (NBET) company. A note in the financials reveals that unrecognized interest income from delayed payments now stands at ₦94 billion, underscoring persistent liquidity tensions in the sector.
Transcorp Power’s CEO, Engr. Peter Ikenga, acknowledged the structural drag of unpaid receivables in an April statement, but remained upbeat: “Our focus remains on enhancing efficiency and unlocking value across the grid, especially as we grow exports.”
Financing the Future
To support this aggressive growth strategy, the company raised an additional ₦23.5 billion in term loans in Q1 2025, increasing its total borrowings to ₦47.9 billion. These loans, which come at steep interest rates of 24.5–30.5%, reflect both Nigeria’s macroeconomic risks and the company’s confidence in its cash-generating ability.
“We’re not just building a utility. We’re shaping a pan-African energy leader,” said Emmanuel Nnorom, Chairman of the Board, during the approval of the Q1 results. The board also announced a ₦26.25 billion dividend payout, highlighting management’s commitment to rewarding shareholders despite the capital-heavy environment.
Long-Term View
With total assets now standing at ₦447 billion, and retained earnings hitting ₦84.9 billion, the company is better capitalised than ever before. Analysts point to its diversified shareholder base, with Transnational Corporation Plc holding 51%, and significant minority stakes held by Rich Point Ltd (32.25%) and Woodrock Energy (6.4%), as a strategic buffer for stability and long-term alignment.
Still, risks persist—from forex fluctuations (which generated a Q1 FX loss of ₦250 million) to gas supply instability and regulatory uncertainty. But with a strong Q1 showing and rising investor confidence, Transcorp Power Plc is signaling that it intends to dominate the next chapter of Nigeria’s power narrative—not merely survive it.
